Jamaine Punzalan

Workers prepare LPG tanks for delivery for refill in a reseller in Brgy. Bagong Silangan in Quezon City on February 1, 2023. Mark Demayo, ABS-CBN News

Article (news)

LPG Tanks for Refill

Jauhn Etienne Villaruel

Agatha Gregorio

Katrina Domingo

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/177606851197920230201-lpg-tanks-MD-10.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Workers prepare LPG tanks for delivery for refill in a reseller in Brgy. Bagong Silangan in Quezon City on February 1, 2023. Mark Demayo, ABS-CBN News </span></span></span> </div><p>MANILA (UPDATED — President Ferdinand Marcos Jr. announced the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene on Monday.</p><p>This, about half a month after Congress passed a law granting the Chief Executive powers to tinker with these duties on petroleum products.</p><div><a href="https://www.abs-cbn.com/news/business/2026/4/8/fuel-prices-unlikely-to-normalize-even-if-war-ends-soon-garin-1231">Fuel prices unlikely to normalize even if war ends soon: Garin</a></div><p>The temporary removal of the P3.36 per kilo excise tax on LPG is expected to reduce  the price of LPG by almost P37 for every 11-kilogram tank, while the P5.60 per liter tax on kerosene will also be suspended, the President said in a Palace press conference.</p><p>When asked why the excise taxes on diesel and gasoline were retained, Marcos said: “That&#x27;s to be discussed tomorrow.”</p><div><br/></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/3U4TDZA7QQY?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>“It is the balance we are trying to achieve. Kung masyadong babain ang presyo ng langis, sasabihin ng mnga importer, hindi na kami kikita, hindi na kami magiimport, masisira naman ang supply natin,” he said.</p><p>“Poprotektahan natin ang mga consumer, ang mga magsasaka, at ng industriya. ‘Yan ang ating hinahanap na balanse… As you know, the economy is a complicated system kaya’t kung may gagawin ka sa isang bahagi, may epekto ‘yun sa kabilang bahagi,” he said.</p><p>Under Republic Act No. 12316, the President may only reduce or suspend excise taxes on petroleum products upon the recommendation of the Development Budget Coordination Committee (DBCC) and after “the average Dubai crude oil price… reaches or exceeds $80 per barrel for one month.”</p><p>The excise tax shall “revert automatically” to its original rates “without need for further legislative or executive action” one week after the one month average of Dubai crude oil prices fall below $80 per barrel or after 3 months, whichever comes first, according to the law signed in March 2026.</p><p>Meantime, the President said that the administration is not keen on reducing or suspending the 12 percent value added tax (VAT) on petroleum products, noting that the government has been getting “a windfall profit from” the VAT due to the higher prices of oil.</p><p> “If we take away the VAT on petroleum products, it will only help the petroleum market. What we need is funding to help the entire society,” he said.</p><p>“With the additional funding that we will get from the VAT collections, ‘yun ang gagamitin ngayon natin to provide. That fund will not exist if we remove the VAT on petroleum products alone,” he said.</p><p> While this is the administration’s current stance, the President said that they are still open to review all proposals.</p><p>“We will still examine it... If the time comes that it really calls for the – if the time will come that VAT should be brought down for whatever products, then we will certainly study it very well,” he said.</p><p>“Right now, the balance, the cost-benefit analysis between the VAT collections and the benefit to people, to ordinary people, still favors that we collect VAT… to provide all of those subsidies that we have been able now to provide, that we have to provide now to people to normalize people&#x27;s lives.”</p><p>Malacañang earlier said that Marcos will need a fresh enabling law from Congress should he adjust VAT rates on petroleum products.</p><div><a href="https://www.abs-cbn.com/news/nation/2026/4/5/ph-energy-chief-clarifies-impact-of-country-s-hormuz-clearance-from-iran-0024">PH energy chief clarifies impact of country&#x27;s Hormuz clearance from Iran</a></div><div><br/></div><div><strong>OIL PLAYERS CAN ‘IMMEDIATELY’ IMPLEMENT EXCISE TAX SUSPENSION</strong></div><p>Various groups representing oil players said they could “immediately” implement the suspension of excise tax on petroleum products once the government makes it official.</p><p>“We already have 85 percent of the market saying that they can implement immediately. There should be no hindrance anymore,” House Committee on Ways and Means Chair Miro Quimbo said, referring to companies’ sale of petroleum products without excise tax.</p><p>But groups said they would need to be given credit for taxes they advanced, should the suspension of excise taxes also apply to fuel inventory already in the Philippines, instead of solely the supply entering the Philippines.</p><p>During the hearing, Independent Philippine Petroleum Companies Association President Tanya Samillano talked about the swift implementation of the tax suspension, should the implementing rules and regulations (IRR) consider existing inventory as well.</p><p>Samillano said around 34 percent of the market is under the association.</p><p>“We can implement it immediately so long as the IRR can also consider our existing inventory, meaning the volume that’s still there prior to the implementation of the suspension of excise tax,” Samillano said.</p><div><br/></div><div><strong>VAT REDUCTION</strong></div><p>Batangas 1st District Representative Leandro Leviste expressed confidence that Congress would approve a measure cutting Value Added Tax (VAT) from 12 to 10 percent, saying it is just the executive branch that is against this.</p><p>“Wala akong nakausap na tutol sa pagbaba ng VAT. Kaya ako naniniwala basta ise-schedule ang botohan para sa pagbaba ng VAT ay aaprubahan ‘to ng Kongreso,” Leviste told reporters.</p><p>Leviste joined a rally on Monday calling for the approval of decreasing the VAT. There were 3,000 Batangueños in attendance, according to Leviste.</p><div><br/></div><div><strong>LACK OF PRICE FREEZE </strong></div><p>ACT Teachers party-list Representative Antonio Tinio slammed the government over the lack of a price freeze or price control on kerosene and LPG to protect consumers, saying the law provides this should be implemented if there is a state of national emergency.</p><p>“Sabi po sa Price Act, kapag may State of National Emergency, automatic po ang price control sa mga basic commodities, and that includes LPG and kerosene,” Tinio said.</p><p>Energy Undersecretary Mario Marasigan said they will consult with those concerned, adding that the implementation of a price freeze is under other agencies, such as the Department of Trade and Industry.</p><p>Meanwhile, SAGIP party-list Representative Paolo Marcoleta appealed to the president for a special session to pass pending legislation amid struggles caused by price hikes.</p><div><a href="https://www.abs-cbn.com/news/nation/2026/3/24/manila-s-jeepney-drivers-struggle-as-middle-east-war-sends-diesel-cost-soaring-1401">Manila&#x27;s jeepney drivers struggle as Middle East war sends diesel cost soaring</a></div><p>Fuel prices have hit historic highs in the Philippines since treaty ally the United States and Israel launched strikes on Iran on February 28, with Tehran effectively closing the vital <a href="https://www.abs-cbn.com/news/world/2026/4/12/trump-orders-us-navy-to-block-hormuz-after-iran-talks-fail-2356">Strait of Hormuz </a>to traffic since.  </p><p>Since hostilities erupted, the Philippines has instituted a four-day workweek for civil servants, distributed cash handouts to tricycle drivers, and seen its sole refinery securing Russian oil.</p><div><strong>— With a report from Agence France-Presse </strong></div><div><strong>RELATED VIDEOS: </strong></div><div><strong><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/EIHVAEJUvzs?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/S5PI6k-My2Q?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></strong><strong></strong><em><strong></strong></em><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/BqkLROXWjGU?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>President Ferdinand Marcos Jr. said Monday he was suspending the excise taxes on LPG and kerosene. </p>

President Ferdinand Marcos Jr. said Monday he was suspending the excise taxes on LPG and kerosene.

Marcos suspends excise taxes on LPG, kerosene

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Marcos suspends excise taxes on LPG, kerosene

Jauhn Etienne Villaruel,

Agatha Gregorio,

Katrina Domingo,

ABS-CBN News

Published April 13, 2026 04:12 PM PHT

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Updated April 13, 2026 09:55 PM PHT

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Ferdinand Marcos Jr.

oil excise tax

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